Determine the break-even sales in units and dollars

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Reference no: EM131259543

Belmain Co. expects to maintain the same inventories at the end of 2014 as at the beginning of the year. The total of all production costs for the year is therefore assumed to be equal to the cost of goods sold. With this in mind, the various department heads were asked to submit estimates of the costs for their departments during 2014. A summary report of these estimates is as follows: waac25h_ch21_pr21_6b.gif It is expected that 12,000 units will be sold at a price of $240 a unit. Maximum sales within the relevant range are 18,000 units. Required: 2. What is the expected contribution margin ratio? % 3. Determine the break-even sales in units and dollars.

Reference no: EM131259543

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